More than 50 Republican lawmakers sent a letter Friday to House Ways and Means Chairman Dave Camp (R., Mich.) saying they are “deeply concerned” about a proposed tax on banks they worry would undermine lending and curb economic growth.

The letter from Rep. Patrick McHenry (R., N.C.), a member of the House Financial Services Committee and co-signed by 53 House Republicans is the latest GOP pushback on Mr. Camp’s Feb. 26 proposal to overhaul the tax code. Included in the proposal is a quarterly tax on financial firms with assets greater than $500 billion.

The Camp proposal has little chance of passage this year because the topic is complex and the parties disagree sharply over revenue targets.

“We welcome all feedback and input on the draft,” said Sarah Swinehart, a spokeswoman for the House Ways and Means Committee. “The provision was included in order to protect taxpayers from being on the hook to bailout certain banks that have been designated ‘too big to fail’ and are receiving a massive taxpayer-funded subsidy. Considering that the banking industry takes very few credits and deductions, they are some of the biggest winners of a rate reduction.”

The tax amounts to $86 billion over 10 years divided between 10 institutions, some of which would pay more than $1 billion a year, according to industry groups.

Since the tax would exempt the assets of foreign banks with U.S. activities, overseas firms could seize market share, the letter states.

“Equally concerning, this excise tax proposal could cause U.S. institutions to relocate their operations from the United States to nations with a less onerous tax policy.”

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Washington Wire is one of the oldest standing features in American journalism. Since the Wire launched on Sept. 20, 1940, the Journal has offered readers an informal look at the capital. Now online, the Wire provides a succession of glimpses at what’s happening behind hot stories and warnings of what to watch for in the days ahead. The Wire is led by Reid J. Epstein, with contributions from the rest of the bureau. Washington Wire now also includes Think Tank, our home for outside analysis from policy and political thinkers.